Layoff Letter

A layoff letter is used when a company needs to terminate an employee for reasons that were not directly caused by their own action or performance. Restructuring, economic downturns, mergers, relocations, buyouts, and other outside factors are usually the cause.

A layoff letter should clearly inform the employee that they have been laid off, and explain their next steps regarding benefits, pay, company property, and the last day of work. It should also inform employees if it is only a temporary layoff.

If you are preparing to lay employees off, be sure to have an attorney review your layoff plans, as well as your letter, to avoid legal risks.

What triggers the WARN Act?

The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) requires employers with 100 or more employees to provide a 60 calendar-day advance notification prior to mass layoffs of employees.

The advanced notice is intended to:

Allow transition time to adjust to the prospective loss of employment.